While the country is still defending itself against the invasion of Russian troops, Ukraine has just “legalized” cryptocurrencies. More precisely, the president, Volodymyr Zelenskyy, promulgated a bill which had been adopted by the parliament.
This law, on digital assets, makes activities on cryptos legal in the country. Companies working in this sector now have a legal framework.
“From now on, foreign and Ukrainian cryptocurrency exchanges will operate legally and banks will open accounts for crypto companies. This is an important step towards the development of the digital asset market in Ukraine”reads a tweet from the Ministry of Digital Transformation.
Ukraine has legalized the crypto sector — @ZelenskyyUa signed a law. From now on foreign and Ukrainian cryptocurrencies exchanges will operate legally and banks will open accounts for crypto companies. It is an important step towards the development of the VA market in Ukraine. pic.twitter.com/lqqO1J9r1k
— Міністерство цифрової трансформації України (@mintsyfra) March 16, 2022
“The “virtual assets” law was signed today! Now crypto is legalized in Ukraine. Thank you, President @Zelenskyy for the support. We believe the crypto industry offers new economic opportunities. We will do our best to bring the bright new future closer as soon as possible”tweeted Alex Bornyakov, Deputy Minister of Digital Transformation of Ukraine.
The law “on virtual assets” was signed today! Now crypto is legalized in Ukraine. Thank you, President @Zelenskyy for the support. We believe that crypto industry offers new economic opportunities. We will do our best to bring the bright new future closer as soon as possible.
—Alex Bornyakov (@abornyakov) March 16, 2022
According to the TechCrunch site, local crypto exchange Kuna, for example, will be able to convert cryptos to fiat. And under this law, companies that want to offer services around digital assets will have to register with the government.
Tens of millions of dollars in crypto donations
Crypto is also (and above all?) a way for the country to raise funds to support its army. Indeed, after the invasion of Ukraine by Russia, the government began to accept donations in cryptocurrencies. And to date, it has already raised tens of millions of dollars. Some media even mention more than 100 million dollars in crypto donations, when we also take into account donations that were not sent directly to the government.
A week ago, Alex Bornyakov also published a small account of the expenses that the Ukrainian army made with the funds received in cryptos (bulletproof vests, night vision goggles, helmets, rations, etc.)
Crypto assets proved extremely helpful in facilitating of funding flows to the Amed Forces of Ukraine. Huge thanks to everyone who donated to the Crypto Fund of Ukraine.
Each and every helmet and vest bought via crypto donations is currently saving Ukrainian soilders’ lives. pic.twitter.com/CghDmXEcJG
—Alex Bornyakov (@abornyakov) March 11, 2022
Bornyakov had also found it convenient to buy this equipment using cryptos. “Some of the military vendors have crypto accounts. In fact, some of them have companies and bank accounts in jurisdictions where cryptos are allowed”he reportedly said, according to the CoinDesk site.
“It’s easier, uncomplicated, transparent and faster compared to a SWIFT transaction, which can take more than a day”he also said.
Today, the country works with companies in the sector: FTX, Kuna and Everstake. With these partners, Ukraine launched a site called Aid for Ukraine for crypto donations. The site accepts donations in Bitcoin, Ether, Tether, Polkadot, Solana, Dogecoin, Monero, Icon, and Neo.
The official website where users from around the world can make crypto donations to Ukraine goes live: https://t.co/UJhiA1jBWc. It has never been so easy to support 🇺🇦! A beautiful joint initiative of our @mintsyfra in partnership with @everstake_pool and @FTX_Official. We win!
— Mykhailo Fedorov (@FedorovMykhailo) March 14, 2022
It is nevertheless important to clarify that even before the war, cryptos already enjoyed a certain popularity in Ukraine. And besides, another bill on digital assets had already been passed by parliament in September, but the president would have used his right of veto.
I am a technology author with 8 years of experience in journalism. My writing covers the latest technology advancements and trends, drawing on my expertise in news journalism and social media platforms. I have contributed to major media outlets such as The New York Times, The Wall Street Journal, and Reuters.